EurekaHedge: Funds of Hedge Funds Outperform Single Managers

Date: Wednesday, August 21, 2013
Author: Alex Akesson,

Hedge funds are back to their winning ways in July as global markets bounced back from a retreat in June, according to the newly released August 2013 Eurekahedge Report. The Eurekahedge Hedge Fund Index was up 1.02% during the month and the MSCI World Index was up by 4.83% in July.

Total assets under management increased by $15.1 billion during the month, bringing the size of the industry to $1.89 trillion. Most of the increase in total assets came from positive performance in July as managers gained $10.1 billion over the course of the month. The industry also witnessed net positive asset flows of $5.0 billion.

Highlights for August include:

· Hedge funds up by 1.02% in July, with 70% of reporting funds delivering positive returns during the month

· Funds of hedge funds outperformed single managers so far in 2013, up 3.83% July 2013 year-to-date versus 3.54%

· Japanese hedge funds outperformed the Nikkei 225 for the third consecutive month, gaining 18.43% as at end-July 2013

· As at end-July 2013, Eurekahedge is currently tracking more than 550 funds that have delivered over 15%, 300 funds that are up more than 20% and 100 funds up more than 30%

· Assets under management increased by US$15.1 billion in July and currently stand at US$1.89 trillion

· CTA/managed futures funds in negative territory for the year, down 2.27% year-to-date

All major hedge fund investment regions, witnessed positive returns during the month. The Eurekahedge Asia ex Japan Hedge Fund Index saw the strongest gains amongst all regional mandates – up 1.93%, outperforming the MSCI Asia ex-Japan Index which was up 1.84% in July. North American hedge funds posted gains of 1.44% during the month as the S&P500 surged 4.95% in July on the back of upbeat corporate earnings, Fed announcements as well as positive macroeconomic data.

Editing by Alex Akesson